To promote the firms working on sustainable business practices, BSE is expected to start with their second thematic index, the BSE GREENEX, on Wednesday. Around 20 companies from BSE 100, their index is giving equal weight age to both energy efficiency and profitability. The Union Corporate Affairs Minister, Veerrappa Moily inaugurated this new plan of BSE.

GREENEX is primarily targeted at retail and institutional investors which include asset managers and pension funds, people and companies who are looking for investing in companies that have strong long-term prospects and are really efficient when it comes to energy consumption. These data sets can be used by funds to develop green financial products.

Bombay Stock Exchange

A source said to the media that, other indices globally focusing on the green credentials, this is for the first time in India; this kind of step has been taken on the basis of the performance in the energy efficiency front.

Ashvin Parekh, Ernest and Young’s National Leader for Financial Services said that, “This is a very good decision. The retail sector is going to get lot of help from this service.”